Massmart Extends Fall After Profit Declined: Johannesburg Mover
The shares declined as much as 8.5 percent to 146 rand, the lowest intraday price since October 2011, and traded 3.1 percent lower at the market close in Johannesburg. Almost 1.3 million shares traded, more than three times the three-month daily average. The stock fell 2.7 percent yesterday.
Earnings per share excluding one-time items and foreign-exchange gains decreased 3.9 percent to 15 percent in the 26 weeks through June 23, the Johannesburg-based company said in a statement yesterday. It didn’t give a reason. Bentonville, Arkansas-based Wal-Mart bought 51 percent of Massmart for $1.8 billion in 2011.
“This share has been priced for magic to come out of the Wal-Mart deal and that hasn’t materialized yet,” David Shapiro, a director at Johannesburg-based Sasfin Securities, said by phone. “There isn’t much evidence that the Wal-Mart strategies are going to take hold soon.”
The company will release full financial results for the period on Aug. 22.
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